Review of Open and Closed Positions:
Link to Last Week’s Watch List
Link to All Watch Lists
Open Positions
ROX (Castle Brands Inc): Added to my position yet again. Currently holding 1800 shares at $1.79. Still trading in a tight range, but holding up well above the $1.70 support level. I think this one makes a move back toward $2.00 and above soon based on a recent National Supply Agreement with Walmart and their Goslings Ginger Beer. This should continue to reflect in their financials with an outside chance of a buyout. Overall, I like how this one is setting up technically (strong chart), fundamentally (Walmart deal), and it has some potential catalysts that could send it flying (strong earnings, buyout, more big contracts, etc.).
LQMT (Liquidmetal Technologies Inc): Still holding 1707 shares at $.28. This one just recently broke out above the $.30 level and I’m looking for that to act as support moving forward. It was range-bound for a while and now slowly starting to grind higher, but this is the type of stock that can go “supernova” on news. It certainly has a history of doing so in the past. The new CEO gives me confidence here, and if he can lock up a deal with a big-name company, LQMT could skyrocket. Potential iPhone rumors could cause a spike as well. Like most tickers I hold, I like the technical setup and potential catalysts that can drive the price higher in the future.
FRED (Fred’s Inc): I re-entered on the recent pull-back to the $6.50 range, currently holding 75 shares at $6.62. It’s basing above $6.30 with the chart showing range to $7.00 or maybe even $8.00. Short float is over 40% so good news can potentially trigger a massive squeeze to the upside. Lots of bad news lately, but the stock appears to have found a floor. Hopefully sellers dry up and buyers appear. Same thesis as My 7/18 Watch List before Capturing a 10% Gain. Looking for the same or similar result again.
Closed Positions
WTW (Weight Watchers International Inc): Man, this one is tough to talk about. I stopped out of my position at $35,47 on 8/1 for a manageable 2% loss. Unfortunately, I got caught in the only major pullback this ticker has had since March. It even hit a low of $32.55 on 8/3, only for it to shoot back up to $42.20 on 8/4 (Good Earnings). Since then, it has soared as high as $46.35 – over 25% higher than my entry price. I wanted to play this uptrend since I noticed it on 7/10 around $34, but just didn’t get to it in time. The $37-40 range is where I would’ve looked to book profits if I had done that. Now earnings are continuing to lift it and I think it’s too high for me to chase at this point. Gave it a shot and have to move on. I was fishing in the right pond, so to speak, but my timing didn’t work out.
SNAP (Snap Inc): This isn’t a ticker that I necessarily have a positive longer-term outlook on, but rather, I was looking for a quick short-term bounce. And that’s exactly what I got. I entered at $13.00 on 8/4 and exited for an 8% gain on 8/7 at $14.00. Today, the stock is already trading back down at my original entry price. I got the small rebound I was looking for (was actually hoping for a little bit more of an upside move), but I’ll be moving on from this one for now. Not the typical type of trade I look for, but it worked. Sentiment has been so bad lately that I thought this one had Short Squeeze potential on 8/3 after the hammer candle.
New Stocks to Watch
PIXY (ShiftPixy Inc): Recent IPO that has become an oversold setup already. Made a nice +7% move today, but I’d like to see more of a basing pattern before a potential entry. This could be more of a volatile “quick hitter” day trade type of play, but I’ll let this one prove it wants to trade above a particular level before pulling the trigger on it. Any good news on oversold stocks like this can have a substantial positive impact on share price.
LAKE (Lakeland Industries Inc): This has been a solid momentum stock in recent months and I like the triangle pattern that’s currently forming. If this breaks top-side around $15.75, I’ll look for a potential entry. Mostly just a technical play.
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